After successful bond issues by Western Sydney University (WSU) and University of Wollongong (UOW) late last year, the University of Melbourne is the first Australian corporate to issue a bond in 2021.
The 10-year fixed rate bond has a coupon of 1.97%p.a. and raised $150 million.
Despite being hit by covid related concerns, investors oversubscribed to both the WSU and UOW issues with about 30 investors in both transactions. Both issues raised $200 million.
[Also read: Roll Your Way to a Higher Yield]
All three bond issues are high quality and low risk and have credit ratings in the ‘AA’ range.
Australian Catholic University and Macquarie University have also issued bonds in the over-the-counter market.